Government Funds not Reaching all Businesses - BCC

Alistair Darling

The financial sector recently received a Government aid of ?200 Billion, with the aim to help the sector stabilize and boot lending; but a recent survey by the British Chambers of Commerce has revealed that funds have not managed to reach to the country's small and medium sized businesses which are still struggling.

According to the survey, 33% of companies have said that the access to finances has been particularly difficult in the past three months, which is 20% more such claims than were recorded in the June survey. Furthermore, 64% of the participants shared that there was no change in the finances available, with only 3% saying the situation had actually improved.

BCC director-general David Frost said, "It is clear that the huge sums that have been injected into the financial system by quantitative easing are still not reaching small and medium-sized businesses in anything like the scale required for business to invest for future success".

The worrying survey figures have been accompanied with the revelation that as many as 400 business people questioned were unhappy with the general trading conditions and 64% said that lack of consumer demand seems to be the biggest barrier to growth as of now. Despite the authorities' effort to bring the economy up via pumping huge amounts of money into it, things will take some time to get back to normal, it seems.

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